Property Taxes6 min read

Indianapolis Metrobloks Data Center Tax Breaks: Oct. 21 MDC Hearing Preview

The Metrobloks data center tax abatement on the old Sherman Drive-In lot goes to an Indianapolis MDC vote Oct. 21. What the $56 million package covers, who absorbs the shift, and how to be heard.

By AribaTax Team

The Metropolitan Development Commission (MDC) is scheduled to hold a public hearing and vote on tax abatements for the Metrobloks data center at 1 p.m. Wednesday, Oct. 21, at the City-County Building, 200 E. Washington St., Mirror Indy reported. The package, negotiated by Indy Economic Development Inc. (IEDI), is worth nearly $56 million to Metrobloks, with up to $339 million more in equipment tax savings for a future tenant.

The site is the former Sherman Drive-In Theater at 2505 N. Sherman Drive in Martindale-Brightwood, Center Township. The MDC approved the zoning on April 1 by a 6-2 vote. The Oct. 21 vote is only about how much of the project's value is taxed, and when.

What the Metrobloks Abatement Package Actually Contains

The commission is weighing two final resolutions under Indiana's economic revitalization area statute, IC 6-1.1-12.1. Figures below come from staff reports in the MDC's Aug. 19, 2026 packet; the item was continued from that agenda.

Resolution 2026-A-016 (real property)Resolution 2026-A-017 (personal property)
What it coversBuildings and site improvementsServers and other equipment
Term10 years15 years (enhanced)
Metrobloks investment$250 million$406 million
Staff-estimated new AV$83.07 million$389.4 million (first year)
Estimated savings$13.58 million (60%)$42.50 million (88.9%)
Taxes paid during the abatement$9.09 million$5.31 million

The two savings figures add up to the roughly $56 million in news coverage. After the real property abatement ends, staff estimate Metrobloks would pay about $2.27 million a year on the new improvements.

40Permanent jobs committed in the MDC resolutions, at an average wage of $46.14/hour
$7.2BTenant equipment investment estimated in the personal property staff report

The $339 million tenant figure comes from the same report: about $960 million in first-year AV and $112.96 million in savings per five-year equipment cycle, times three cycles. Staff estimate the tenant would still pay about $14.1 million in personal property taxes over the term.

Note

Why 15 years is allowed. Abatement schedules are capped at 10 years under IC 6-1.1-12.1-17(b), but IC 6-1.1-12.1-18 allows an "enhanced" schedule of up to 20 years for new business personal property. Any term past 10 years triggers a required public hearing after the tenth year to review whether the company kept its statement-of-benefits commitments.

The draft resolution also has the Department of Metropolitan Development (DMD) survey the project annually for 17 years, and lets the commission reduce, rescind, or claw back the deduction if job, wage, or investment targets are missed.

Who Negotiated It, and Who Objected

IEDI is a nonprofit created in 2025 by Mayor Joe Hogsett's administration to attract investment, Mirror Indy reported. It recommends incentive offers, DMD staff process them, and the MDC decides. Hogsett chairs IEDI's board. The staff reports say that in IEDI's opinion, the project "would not be economically feasible without the tax abatement incentive."

The city has not spoken with one voice. At the July 15 MDC meeting, DMD Director Megan Vukusich urged IEDI to withdraw the request, saying "offering economic incentives at this time is not appropriate." A Hogsett spokesperson denied any disagreement. Separately, the Hoosier Environmental Council and residents have challenged the zoning approval in Marion Superior Court. For the citywide rules that followed, see our guide to Marion County's data-center zoning ordinance.

How an Abatement Shifts the Tax Burden to Neighbors

An abatement does not shrink the levies local units collect; those come from budgets and the state's maximum levy formula. It shrinks the net assessed value the levies are spread across, so rates end up higher than if the property were fully taxed.

Staff's post-abatement estimate uses the Indianapolis-Center district rate of $2.7291 per $100, the highest of the eight consolidated-city districts in our 2026 certified rate breakdown. The circuit breaker caps (IC 6-1.1-20.6: 1% of gross AV for homesteads, 2% for rentals and farmland, 3% for other property) decide who absorbs a higher rate:

  • Owners already at their cap see no bigger bill; local units lose more revenue to the cap instead. See Indianapolis cap exposure and circuit breaker caps explained.
  • Owners below their cap pay the higher rate directly.
  • Fully taxed new value would widen the base and pull rates down for everyone.

So the question is not whether the data center adds value, but how much of it is taxed and when. At 60% and 88.9% savings, most of it stays off the rolls for years, then phases in, like the projects in our industrial abatement phaseout tracker.

Data center incentives come in layers: the state sales tax exemption costs the state, while local abatements like these reduce the local base, as our coverage of Franklin Township's withdrawn Google project explains. For how finished facilities are assessed, see Indiana data-center assessments and the LEAP buildout. Metrobloks is not alone: the same Aug. 19 agenda carried a preliminary 10-year real property abatement for Sabey Data Center Properties LLC at 6400 Kentucky Avenue in Decatur Township.

How to Participate in the Oct. 21 MDC Hearing

The MDC is a nine-member board appointed by the mayor and the City-County Council. Objections raised at the hearing become part of the record it must weigh:

  1. Read the proposal. Request Resolutions 2026-A-016 and 2026-A-017 by emailing planneroncall@indy.gov, which MDC notices list for copies.
  2. File a written objection to the same address before the hearing; notices say such objections "will be considered." Be specific: abatement lengths, the 40-job commitment, clawback terms, community commitments.
  3. Speak in person. Notices state "all interested persons will be given an opportunity to be heard." Arrive before 1 p.m. Oct. 21.
  4. Need accommodations? Call the Office of Disability Affairs at (317) 327-7093 at least 48 hours ahead.
  5. Go to the IEDI meeting first: 5:30-7 p.m. Oct. 7 at Frederick Douglass Park, 1616 E. 25th St. Register and submit questions online.

Warning

MDC hearings "may be continued from time to time," and this item has already moved more than once. Check the agenda the week of Oct. 19.

What Martindale-Brightwood Owners Should Do Now

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